Under what circumstances will Goldfish Swim School be liable for personal injury or property damage?

According to the 2025 Goldfish Swim School Franchise Disclosure Document, Goldfish Swim School, as the franchisor, can enter a franchisee's leased premises to restore it to a "white box" condition at the expiration or termination of the lease without being held liable for trespass or other damages to the landlord. This situation arises if the franchisee fails to fulfill their obligation to de-identify the leased premises, which includes actions like filling in pools and removing plumbing, equipment, and any signs of affiliation with Goldfish Swim School.

This provision protects Goldfish Swim School from liability in specific circumstances related to the condition of the leased property after a franchise agreement ends. It ensures that the premises are returned to a neutral state, preventing any continued association with the Goldfish Swim School brand by a former franchisee. This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand identity and ensure consistent standards across all locations, even after a franchise ceases operation.

For a prospective franchisee, this means understanding the full scope of the restoration obligations at the end of the lease term. Failure to meet these obligations can result in Goldfish Swim School stepping in to complete the work, with the franchisee potentially bearing the costs. While Goldfish Swim School is protected from liability to the landlord during this process, the franchisee may still be responsible for the expenses incurred by Goldfish Swim School in restoring the premises.